What's Moving the Oil Markets?
•-Crude oil futures in London rebounded after a heavy
sell-off, which was primarily led by the partial exiting of the hedge funds, but
recovered to trade above $71/barrel on short-covering as the threat of
hurricanes in the US Gulf Coast returned and Iran again refused to halt its
nuclear program.
•-The front-month October Brent futures contract traded $70.99/barrel at
1235GMT. Oil prices had tumbled sharply in the last few trading sessions as
fears of a hurricane-related disruption to US oil production in the Gulf of
Mexico from tropical storm Ernesto appeared to have dissipated.
•- But another storm was brewing in Hurricane John, currently a category three
hurricane battering the western coast of Mexico. While its path implied there
was no threat to oil production, the market remains jittery just days after the
first anniversary of the devastating Hurricane Katrina.
•- Thursday marked the last day for Iran to comply with a UN Security Council
demand to halt its uranium enrichment program or face possible sanctions.
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